Quote:
Originally Posted by steve B
I wonder how it would work out if someone claimed a card sale like this under capital gains.
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You'd have to run the numbers to see what works best. I believe the capital gains tax for collectibles is 28%. You could set up a card business and file a schedule C, and see whether that works better than using a capital gain when the costs of starting and operating a business are considered. You could also set up an LLC or S corporation, capitalize it with cards, sell the Jeter, and take the section 199A deduction, which deducts the first 20% in pass-through income from the business, then you pay regular income taxes on the rest. There are limits tied to income levels and certain activities, however, so you need a good tax planner to work you through it all.
But don't take my word for it...I don't give tax advice and when I do I usually get it wrong. The only advice I will stand by is "pay the taxes"; if I have a tremendous windfall because I busted a pack of cards 20 years ago, I am going to enjoy it and not get all bunged up about the taxes.